Not paying either mortgage

[subking]

Hi all been awhile but I need advice.

We were discharged in 02-2009, which was such a relief in itself and I would like to thank this forum for helping with all the stress.

Ok current situation is we live in Michigan economy has tanked as everyone knows and we like so many are upside down on our home. We have two mortages and didn't reaffirm either loan however we've continued to make all payments on time. Well this month there just is no more money to keep paying both so instead of paying the first only and not paying the second and waiting around to get foreclosed on we figure the best thing to do is not pay either one, save, and stay in our house as long as possible.

Lets hear some advice and opinions on what you think would be the best for us to do.

Thank you.

[StartingOver08]

Do you have equity in your home or are you upside down? If the second is gone, are you still upside down?

[subking]

No equity we are upside down by all means, even without the second we couldn't sell our home for what we owe on the first.

[HHM]

Then what you propose is appropriate. Stop paying both mortgages and live in the house as along as possible. Nothing wrong with that. Smartest financial move you could make right now.

[StartingOver08]

Then what you propose is appropriate. Stop paying both mortgages and live in the house as along as possible. Nothing wrong with that. Smartest financial move you could make right now.

+1 Take advantage of your fresh start. Stay as long as you possibly can to build up your cash reserves. Good luck!

[subking]

Then what you propose is appropriate. Stop paying both mortgages and live in the house as along as possible. Nothing wrong with that. Smartest financial move you could make right now.

Thanks for your advice. I do appericate it very much.

We've considered to stop paying the second and stay current with the first but we fear the second will forclose on us even though there is no money to be made they may get a little bite if they buy the first loan and then own both mortgages and sell the house.

Heres my deal three bedroom Brick Ranch with detached 2 1/2 car Garage
1st $125,000
2nd $40,00

Home needs alot of repair and updates. Would probably get about $90,000 maybe on the market today I don't know maybe more maybe less. Thats hard to say. But were fearful if we keep current on the 1st and stop the 2nd they will foreclose on us anyway.

Any HELP is appericated.

Thank you startingover08

[BobMango]

Thanks for your advice. I do appericate it very much.

We've considered to stop paying the second and stay current with the first but we fear the second will forclose on us even though there is no money to be made they may get a little bite if they buy the first loan and then own both mortgages and sell the house.

Heres my deal three bedroom Brick Ranch with detached 2 1/2 car Garage
1st $125,000
2nd $40,00

Home needs alot of repair and updates. Would probably get about $90,000 maybe on the market today I don't know maybe more maybe less. Thats hard to say. But were fearful if we keep current on the 1st and stop the 2nd they will foreclose on us anyway.

Any HELP is appericated.

Thank you startingover08

Ok, are you taking a poll? cuz you already got the best advice from HHM.

The only other reason I could think of for you staying would be if your mortgage payments are less than renting would be, and I'm thinking that's unlikely. So go with your first instinct, stop paying and save for a new place to rent after you run out the clock.

[subking]

Yea I'm taking a poll, lol. No I just want to hear what others maybe in my position have done in this situation

Ok say I quite making payments on both this month. Anybody know how the procudure goes after that? About how long can we expect to stay before we have to leave? We live in Michigan 1st is BoA 2nd is Green Tree who bought the 2nd after we were discharged.

[LoadedGuns]

Hi all been awhile but I need advice.

We were discharged in 02-2009, which was such a relief in itself and I would like to thank this forum for helping with all the stress.

Ok current situation is we live in Michigan economy has tanked as everyone knows and we like so many are upside down on our home. We have two mortages and didn't reaffirm either loan however we've continued to make all payments on time. Well this month there just is no more money to keep paying both so instead of paying the first only and not paying the second and waiting around to get foreclosed on we figure the best thing to do is not pay either one, save, and stay in our house as long as possible.

Lets hear some advice and opinions on what you think would be the best for us to do.

Thank you.

Sounds like you mind/checkbook has already decided. So begins the count down to foreclosure. You're not the first nor the last to do this.

[eventsdj]

whats the time frame for BOA?

We have a 1st and 2nd through BOA. Have not made April, may or now June payments. Have not heard a word.nothing.
Got my June statement and it did not even have a late notice.

We are in Wisconsin. We did not reaffirm, and at this point it takes 3 of 4 paychecks to pay the mortgage, there is no way to catch up.

Anyone have an idea on what we should expect to come soon?

Thank you!

[overspent]

Foreclosures are moving fast. Expect 6 to 8 months with BofA. I Stopped paying since Oct 2009. Just got NOD last week, sale date in October. So you'll a few more months of free rent. Save cah and just get ready.

[sofarsogood2]

How fast the actual foreclosure depends on a lot of factors:
-Judicial/non judicial state
-location
-equity or lack of
-how backlogged the courts are
-how backlogged the bank is
-how fast their attorneys get things together
-if they file the paperwork correctly and can prove standing to foreclose- you need an attorney of your own to take advantage of those issues and stretch it out longer.

Generally speaking, if you are in a hard hit area with non-judicial (CA), it takes about a year if uncontested (from posts I've read). In a judicial state that is hard hit (FL), 18 mos- 2 years or more uncontested, longer if your attorney can find errors in the filing. That I know from the experience of friends. You will get the lis pendis, NOC early on as required by law, but then it seems to stall for a long time.

You can also apply (and reapply after you are denied) for Hamp. New regulations have gone into effect that the lender cannot continue to pursue foreclosure if a HAMP app is in review.

Good luck!

[Billssuck]

I'm just like eventsdj but in Missouri, stopped paying mortgages in April and have heard nothing from BOA as of date. I assume they are working on getting the stay lifted and when I see something on that, I know it will be rolling along shortly. However, I just got a $4,000+ insurance bill (double my normal) from my insurance for my yearly renewal in July. Yeah, right...that'll get paid. I am now looking into liability insurance only.

[bladerunner]

RE: Subking and everybody else...We stopped paying our Citimortgage in Jan 2010...I live in Vegas and as most of you know on this forum, NV and Las Vegas has been hit the hardest in the 21st Depression (NV unemployment now higher than MI, 14.2 %) A NOD was taped to our front door last week...a notice of auction 30 days later, give or take 40,000 foreclosed homes before ours.. We owe $157,000 on a house that was worth over $250,000 three years ago and are now being sold for as little as $ 32,000.I have a question for anyone on this forum...

Has anybody been through a successful short sale and if they did...Was the Deficiency Balance forgiven by the mortgage holder or was a 1099 tax form issued for the forgiven debt...any response would be most helpful...NV became a non-recourse state Oct 1 2009, and the law is not retroactive....thank you all so much....

[Over our heads]

We haven't made a mortgage payment all year. We were sent a foreclosure notice in May, with a sale date of 6-4. Citimortgage is the first and we are in MO, all they had to do was send us a letter.

We immediately put the house on the market, got extremely lucky, and got an offer w/in 3 days. Which I believe was the end of April, as the buyers wanted to meet the cut off for the tax credit. We are closing on 6-29. Since we had an offer, the mortgage company was required to suspend the foreclosure sale.

It is my understanding that with the mortgage debt relief act, you are not required to claim the forgiven amount as income, so long as the amount was for the sole purpose of the mortgage. Meaning, you hadn't refinanced and got cash out. In our case, our second was not reaffirmed, so it makes no difference to us, and our first will be covered w/ the purchase price.

Our only question now is, when does the clock start ticking for us to be able to purchase a new home